As of October 1, new excise tax rates on fuel have come into effect in Latvia. The excise tax on diesel has been reduced to the minimum allowable level in the European Union — 330 euros per 1,000 liters, while the excise tax on gasoline has been decreased for the first time in the current cycle to 490 euros per 1,000 liters, writes Diena. This measure is expected to remain in effect until the end of the year and will allow retail prices for diesel and gasoline to decrease by approximately eight cents per liter. However, the need to support the market has arisen against the backdrop of new risks for the global fuel market. U.S. Treasury Secretary Scott Bessent reported that the American administration is considering a complete or partial ban on the export of diesel fuel for a period of three months. U.S. President Donald Trump has indicated that he supports such an initiative. If restrictions are implemented, they could affect not only the American market. For European countries, including Latvia, this means a potential reduction in fuel supply and additional pressure on prices. Although the U.S. is not the main supplier of fuel to Latvia, its role remains significant. Over the past 12 months, American oil products accounted for 14.4% of Latvia's imports, and from March to June of this year, the share of the U.S. in aviation fuel imports reached 33.6%. This does not mean that Latvia will face a fuel shortage. However, potential restrictions on American exports could lead to a redistribution of supplies in the global market and a new wave of price increases. The President of the Bank of Latvia, Martins Kazaks, believes that the reduction in excise tax only temporarily alleviates the consequences of rising fuel prices. According to him, in the long term, the country needs to reduce its dependence on fossil fuels and imported energy resources. This year, authorities have already reduced the excise tax on diesel fuel several times. Initially, the preferential rate was in effect from April to June, then it was extended, and now the tax on gasoline has also been further reduced. Thus, the reduction in excise tax should partially offset the potential rise in fuel prices if restrictions on exports from the U.S. are indeed implemented.